Generation/Supply

Power Auction Foreshadows Possible Increase in Electricity Bills

The price of power set at a key regional auction doubled for many states, foreshadowing a potential increase in electricity bills in the coming years.

The increase reflected a heightened effort on the part of the nation's largest grid operator, PJM Interconnection LLC, to encourage more power production and distribution in the swath of territory between Newark, N.J., and Chicago that supplies 61 million people, industry executives and analysts said. New state environmental regulations and a robust demand outlook, influenced by the year's historically cold winter, also played a role, they said.

The so-called "capacity price" was set at $120 a day for every megawatt produced by power plants across most of PJM's territory from July 2017 to May 2018, according to results of the annual auction released by PJM on Friday.

Natural Gas

EIA: Marcellus gas production continues to outpace takeaway capacity

Rising production of natural gas in the Marcellus shale play in the Appalachian basin continues to outpace the growth in the region's pipeline takeaway capacity, which has led to supply backups in the region, the US Energy Information Administration reported in a weekly gas report.

EIA noted that this phenomenon has also "contributed to a number of natural gas wells in Marcellus remaining backlogged, with a Feb. 28 report from Barclay's estimating that more than 1,300 wells there are drilled but not completed."

EIA noted that several proposed and recently completed projects will provide additional pipeline infrastructure to relieve some of the Marcellus supply glut.

Green Energy

Solar-electric Generating Capacity Increases Drastically in the Last Four Years

U.S. solar capacity increased significantly in the last 4 years. In 2010, the total solar capacity was 2,326 MW which accounted for a comparatively small fraction (0.22%) of the total U.S. electric generating. capacity. By February 2014, this capacity increased 418% to 12,057 MW, a 9,731 MW gain, and now accounts for almost 1.13% of total U.S. capacity.

Regulation

Massachusetts utilities ordered to modernize the grid

The Massachusetts Department of Public Utilities (DPU) has ordered the state's electric distribution utilities to file long-term plans to modernize the grid over a ten year period, with regular upgrades to each plan as modernization progresses.

A separate order asks utilities to offer time-varying rates and empower customers to make more informed decisions about their electricity use.

Rates/Tariffs

Americans by 2 to 1 Would Pay More to Curb Climate Change

Americans are willing to bear the costs of combating climate change, and most are more likely to support a candidate seeking to address the issue.

By an almost two-to-one margin, 62 percent to 33 percent, Americans say they would pay more for energy if it would mean a reduction in pollution from carbon emissions, according to the Bloomberg National Poll.